1. ORANGE UNIFIED SCHOOL DISTRICT
nd INTERIM REPORT
March 8, 2018

2. Budget Calendar
June 8, Board of Trustees Adopts Proposed Budget
June 30, 2017 – State adoption of budget
September 14, 2017 – Unaudited Actuals & Revised Budget
December 7, 2017 – First Interim Report to Board for Approval
January 2018 – Governor’s Projected Budget for Released
March 2018 – Second Interim Report to Board for Approval
May Governor’s “May Revise” 2

3. Major Items Affecting the Budget
Declining Enrollment-2.28%
CalSTRS and CalPERS Employer Contributions
ADA
564
663
CalSTRS
14.43%
16.28%
18.13%
CalPERS
15.53%
17.70%
20.00% 3

4. District Contributions to CalSTRS and CalPERS4

5. Governor’s Proposal for 2018-19 Budget
Proposition 98 funding of $78.3 billion
An average increase of $465 per pupil (supplemental/concentration and base) over the level provided in
District’s Increase to Base $ per pupil
Full funding of the Local Control Funding Formula- Two years ahead of the initial implementation timeline
District’s Target Funding has dropped $4.2 million since
Funding of 2.51% COLA Including:
Special Education
Child Nutrition
Preschool 5

6. Multi-Year Projections: Before Budget Reductions
REVENUES
287,162,648
284,775,012
284,557,231
284,559,745
EXPENDITURES
297,958,026
295,078,638
301,212,321
304,431,907
CSEA Tentative Agreement
133,172
266,344
TOTAL EXPENDITURES AS ADJUSTED
289,091,198
295,344,982
301,478,665
304,698,251
INC/DEC IN FUND BALANCE
(10,928,550)
(10,569,970)
(16,921,434)
(20,138,506)
BEGINNING BALANCE
62,965,570
52,037,020
41,467,050
24,545,616
PROJECTED ENDING BALANCE
4,407,110
Adjustment to Ending Fund Balance
Stores, Revolving Cash and Carryover
(334,295)
Reserve for STRS and PERS Increases
(9,305,476)
(5,959,895)
(2,509,328)
(1,127,261)
3% State Required Contingency
(8,942,736)
(8,860,349)
(9,044,360)
(9,140,948)
Unappropriated Fund Balance
33,454,513
26,312,511
12,657,633
(6,195,394) 6

7. Budget Reductions: Level 1 and 27

8. Multi-Year Projections: After Budget Reductions
REVENUES
287,162,648
284,775,012
284,557,231
284,559,745
Identified Potential Sources of Revenues
250,000
One-Time Mandated Reimbursement
7,298,999
TOTAL REVENUES AS ADJUSTED
292,324,011
284,807,231
284,809,745
EXPENDITURES
297,958,026
295,078,638
301,212,321
304,431,907
CSEA Tentative Agreement
133,172
266,344
One-Time Expenses (Textbooks, Computers, Buses)
5,424,772
1,874,227
Identified Potential Budget Reductions
(3,035,413)
(3,066,127)
(3,079,542)
TOTAL EXPENDITURES AS ADJUSTED
298,091,198
292,309,569
303,837,310
303,492,936
INC/DEC IN FUND BALANCE
(10,928,550)
14,442
(19,030,079)
(18,683,191)
BEGINNING BALANCE
62,965,570
52,037,020
52,051,462
33,021,383
PROJECTED ENDING BALANCE
14,338,192
Adjustment to Ending Fund Balance
Stores, Revolving Cash and Carryover
(334,295)
Reserve for STRS and PERS Increases
(9,305,476)
(5,959,895)
(2,509,328)
(1,127,261)
3% State Required Contingency
(8,942,736)
(8,769,287)
(9,115,119)
(9,104,788)
Unappropriated Fund Balance
33,454,513
36,987,985
21,062,641
3,771,848 8

9. Planning Ahead
The Governor’s Budget Proposal provides additional funding for LCAP but not proportionally for all Districts or programs
There is insufficient new funds in the Base to support “restoration” from levels ongoing
LEAs must be prepared to make decisions based on Local Factors:
LCAP process
Enrollment
Reserve levels
Local Priorities
Enrollment Forecasts and budgets are starting to be developed for next fiscal year
Implementation of budget reductions including conferences, overtime etc.
Special Education has expanded the inclusion program
Discussions have centered around providing additional High-Quality instructional programs
Additional CTE Pathways are being planned
It will be important to have flexible plans in place, as change is inevitable
Additional accountability on use of Supplemental/Concentration Funds 9

10. Next Steps Anticipate Adoption of LCAP in May 2018
“May Revise” will contain the actual assumptions which must support budget
Balanced budget must be adopted by district prior to June 30, 2018
We will not know the level of funding until State Adopts their budget
Once the State Budget is adopted, the district makes adjustments to its budget 10